- December 3, 2024
- Posted by: FLORES
- Categories: Business Strategy, Human Resources, Payroll
California’s Minimum Wage to Increase to $16.50 per hour in January 2025
California’s minimum wage will increase to $16.50 per hour for all employers on January 1, 2025. Some cities and counties in California have a local minimum wage that is higher than the state rate. State law requires that most California workers be paid the minimum wage. Workers paid less than the minimum wage are urged to contact the Labor Commissioner’s Office in their area to file a wage claim.
The change in the minimum wage also affects the minimum salary an employee must earn to meet one part of the overtime exemption test. Exempt employees are not subject to the payment of overtime for hours worked. An employee must earn no less than two times the state’s minimum wage for full-time work to meet this initial requirement of the exemption test. As of January 1, 2025, employees in California must earn an annual salary of no less than $68,640 to meet this threshold requirement.
Employers must post the Minimum Wage Order and the Wage Order applicable to their workplace at a worksite area accessible to employees.
Additionally, the following states will also have increases January 1, 2025:
- Arizona – $14.70 an hour
- Colorado – $14.81 an hour
- Illinois – $15.00 an hour
- Nebraska – $13.50 an hour
- Minnesota – $11.13 an hour
- Montana – $10.55 an hour
- South Dakota – $11.50 an hour *tip credit $5.75/hour
- Virginia – $12.41 an hour
- Washington – $16.66 an hour
Here is a complete listing of minimum wages for California in 2025. These tables are subject to change pending legislation and local ordinances.
| County or City | 2025 Minimum Wage | 2025 Minimum Wage – for Small Businesses * |
| Alameda | $17.00 (effective 7/1/24) | – |
| Belmont | $18.30 | – |
| Berkeley | 18.67 (effective 7/1/24) | – |
| Burlingame | $17.43 (based on CPI) | |
| Cupertino | $18.20 | – |
| Daly City | $17.07 | – |
| East Palo Alto | $17.45 | – |
| El Cerrito | $18.34 | – |
| Emeryville | $19.36 (effective 7/1/24) | – |
| Foster City | $17.39 | – |
| Fremont | $17.30 (effective 7/1/24) | – |
| Half Moon Bay | $17.47 | – |
| Hayward* | $17.36 | $16.50 (25 or less) |
| Los Altos | $18.20 | – |
| Los Angeles city | $17.28 (effective 7/1/24) | – |
| Los Angeles County | $17.27 (effective 7/1/24) | – |
| Malibu | $17.27 (effective 7/1/24) | – |
| Menlo Park | $17.10 | – |
| Milpitas | $17.70 (effective 7/1/24) | – |
| Mountain View | $19.20 | – |
| Novato* | $17.00 (for 26-99 employees) | $16.42 (25 or less employees) |
| $17.27 (for 100+ employees) | ||
| Oakland | $16.89 | – |
| Palo Alto | $18.20 | – |
| Pasadena | $17.50 (effective 7/1/24) | – |
| Petaluma | $17.97 | – |
| Redwood City | $18.20 | – |
| Richmond | $17.20 | – |
| San Carlos | $17.32 | – |
| San Diego | $17.25 | – |
| San Francisco | $18.67 (effective 7/1/24) | – |
| San Jose | $17.95 | – |
| San Leandro | $16.50 | – |
| San Mateo | $17.95 | – |
| Santa Clara | $18.20 | – |
| Santa Monica | $17.27 (effective 7/1/24) | – |
| Santa Rosa | $17.45 | – |
| Sonoma* | $18.02 (26 or more employees) | $16.96 (25 or less employees) |
| South San Francisco | $17.70 | – |
| Sunnyvale | $19.00 | – |
| West Hollywood | $19.65 (effective 7/1/24) |
Source: NEW CALIFORNIA MINIMUM WAGE EFFECTIVE JANUARY 1, 2025 – SDEAHR
Please note Fast Food restaurant workers (for chains with 60 or more locations around the nation), have a higher minimum wage of $20.00/hour that was previously effective April 1, 2024. Source: Minimum Wage
If you have any questions or need help understanding how this may affect your business, give FLORES a call. Our HR department would be happy to assist you. Contact us at (619) 588-2411.